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Economic Strength May Not Last

Durable-Goods Orders,
Housing Rise, but Drops
In Coming Months Seen

By

Sudeep Reddy

Updated Aug. 25, 2007 12:01 a.m. ET

WASHINGTON -- Factory orders and housing may have been picking up momentum before the latest turmoil in credit markets clouded the economic outlook.

Orders for durable goods, those expected to last more than three years, surged in July, and an important gauge of capital spending turned up, according to government data released Friday. Sales of newly built homes perked up, too, though that could be a temporary flicker of life in a...

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David Wyss, chief economist at Standard and Poor's says July durable goods orders and new-home sales are encouraging, but existing-home sales data due out next week may be a clearer indication of where the housing market is heading.